Australia is set to become a pioneer in the adoption of numberless credit cards as part of a global shift toward enhanced security and fraud prevention. Mastercard's initiative, which replaces credit card numbers with tokenization and biometric authentication, aims to minimize the risk of data breaches and unauthorized transactions. However, this transition raises new concerns about the security of mobile devices and the permanence of biometric data.
Considering the rapid advancements in smart retail and payment technologies, experts from Queensland University of Technology predict that physical credit cards, regardless of their numberless design, will soon become obsolete. They anticipate that biometric payment options will replace traditional credit cards. Mastercard, for example, has already introduced biometric payment features, enabling transactions with a smile or a wave of the hand.
Australia is set to witness the first rollout of these numberless cards through a partnership between Mastercard and AMP Bank, with other banks expected to follow suit within the next year. The removal of credit card numbers aims to combat the rising tide of card fraud. In 2023-2024, Australia experienced A$868 million (US$546 million) in card fraud, a significant increase from the previous year. Data breaches, affecting both large and small businesses, frequently expose credit card numbers and payment details. The 2022 Optus data breach, for instance, compromised the information of millions of customers, including personal details and financial data. Card-not-present fraud, which accounts for 92% of all card fraud in Australia, has surged by 29% in the last financial year. This type of fraud involves unauthorized transactions without the physical possession of the card. The CVV code, designed to verify the physical presence of the card, has proven ineffective against this rising threat. Removing credit card numbers directly addresses this vulnerability by preventing fraudsters from processing unauthorized transactions without the card. It also mitigates the potential damage to victims in the event of data breaches, as organizations will no longer store sensitive payment information. While this shift strengthens credit card security, it raises new concerns about the security of mobile phones and telecommunication providers. Offenders are increasingly exploiting vulnerabilities in these systems through mobile porting and impersonation scams. The reliance on biometrics for authentication also presents challenges. Unlike credit card details, which can be replaced in case of a breach, biometric data is fixed and immutable. This makes biometrics a more attractive target for attackers, potentially exposing victims to lasting and irreversible harm. High-profile data breaches involving biometric information have already occurred, raising serious concerns about the security of this authentication method.
CRÉDITO CARDS FRAUD BIOMETRICS TOKENIZATION PAYMENT SECURITY CARD NOT PRESENT FRAUD DATA BREACHES SMART RETAIL
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
MT Explains: Miles vs cash rebates on credit cardspWhen choosing a credit card, which reward system should you go for – miles or cash rebates? On the brand-new Money Talks Explains, where we break down your financial questions, Tim Philips from Inkcome explains the pros and cons of each, the trade-offs and key factors to consider before choosing your next credit card.
Read more »
The Unexpected Perks of Credit Cards: Rewards, Protection, and MoreThis article explores the often overlooked benefits of credit cards, highlighting their potential to save money through rewards programs, offer travel perks, and protect against fraudulent transactions. It also emphasizes the importance of responsible credit card use by always paying off balances in full and on time.
Read more »
Personal Loans vs. Credit Cards: Which is Right for You in Singapore?This article explores the differences between personal loans and credit cards, highlighting their strengths and weaknesses in various financial situations. It provides guidance on choosing the best option for funding home renovations, covering unexpected expenses, consolidating debt, and financing dream vacations.
Read more »
Best bank offers in Singapore (January 2025): Win a Porsche Taycan, 6-day UK sightseeing tour, flights from $70 and moreEverybody loves credit card sign-up promotions, but not many of us realise the promotions don't end with a welcome gift. Banks actually shower us with tons of lifestyle deals and perks just for owning and using their credit cards or debit cards. Once in a while, we even get super exclusive deals like priority early access to concert tickets.
Read more »
Man takes $0.5m from company to buy Rolex watch, Pokemon cardsAn accounts executive siphoned off more than $500,000 from his company over two months to line his own pockets. Linberg Yeo Yu Wei, 27, used the ill-gotten gains to buy Pokemon trading cards, an iPad and a second-hand Rolex watch. He also used the money to gamble,...
Read more »
13 under probe for allegedly registering SIM cards in exchange for cash and gambling creditsThree men, aged 29 to 33, were arrested for allegedly providing fraudulently registered postpaid SIM cards in exchange for monetary gains.
Read more »